Latest News
-
Public Storage lifts 2025 forecast, misses Street estimates; shares fall
Public Storage, the operator of storage facilities, raised its core 2025 funds from operations forecast (FFO), citing an increased pace of acquisitions as well as stabilizing operations. The company expects to achieve annual core FFO of between $16.45 per share and $17, as opposed to the previous expectation of $16.35 per share and $17. The midpoint is below analyst estimates of $16.84 a share, according LSEG data. After-hours, shares of the company dropped by 1.3%. CEO Joe Russell said, "We have raised our outlook due to stabilizing operations and an increased acquisition volume." Russell said that "we are investing more than $1 billion in acquisitions and developments this year." The company's profit has been affected by higher operating costs due to inflation and a decline in the occupancy of storage units. Public Storage, a company that leases monthly storage space for both personal and commercial use, has reported revenue of $945.2 million for the three months ended June 30. This compares to analyst estimates of $1.19billion. Core FFO was $4.28 per share for the second quarter, compared with Wall Street expectations of $4.24. The company announced that it has appointed Luke Petherbridge to its board as a new trustee, with immediate effect. He will be a member in the committees for nominating, sustainability, and governance. (Reporting from Abhinav Paramar in Bengaluru, Editing by Mohammed Safi Shamsi.)
-
Extra Space Storage's core FFO for the second quarter is below expectations
July 30th - Extra Space Storage, the U.S. operator of self-storage units, missed analyst's expectations for core funds generated from operations (FFO), for the second quarter. This was due to a decline in net operating income at same-stores. Salt Lake City-based real estate trust, a real estate investment trust, has also lowered its forecast for full-year core fund from operations (FFO), from $8.00 per share to $8.25. After-hours trading saw a 4.1% drop in the shares of the company. Since the beginning of the year, they have lost 0.2% in value. As they deal with fluctuating occupancy rates and increasing competition in key markets, self-storage REITs such as Extra Space face a growing challenge of weakened pricing power. The Company said that as of June 30, it managed 1,749 retail stores for third parties, and 414 in joint ventures unconsolidated. The REIT reported an occupancy rate of 94.6% in its same-stores for the quarter compared to 94% during the same period last year. The company reported that the same-store net income had declined by 3.1%. It reported core FFO for the second quarter of $2.05 per common share, which was lower than analysts' expectations of $2.06 a share. The total revenue for the three months ended on June 30 increased from $810.7 millions in the same period last year to $841.6. Analysts expected revenue of $761.9 million on average for the quarter.
-
C.H. Robinson's profits beat Q2 estimates due to cost-cutting and weaker revenue
Global freight forwarder C.H. Robinson, a global freight forwarder, reported a second-quarter profit that was above Wall Street expectations on Wednesday. Cost-cutting measures including job cuts helped offset the impact of declining revenue in its ocean and truckload shipping businesses. According to LSEG data, the Minnesota-based firm reported an adjusted profit of $1.29 for the quarter ending June 30 compared to analysts' average estimates of $1.16. Total direct expenses decreased 9.2% during the quarter due to cost-saving measures and the divestiture from its European Surface Transport business. The number of employees at the company decreased by 1,616 or 11.2% on an annual basis, to 12,858. Revenue fell 7.7%, to $4.14 Billion. This was below expectations of $4.17 Billion largely because the ocean services were priced lower and fuel surcharges on truckload operations were reduced. C.H. C.H. After-hours, the shares of the company increased by more than 2%. Since the beginning of the year, they have dropped close to 6%. (Reporting from Abhinav Paramar in Bengaluru, Editing by Tasim Zaid)
-
Explosive attack stops crude oil pumping in Colombia's Cano Limon - Covenas pipeline
A crude oil pipeline in Colombia's north has been shut down due to an explosive attack, Cenit, the operator of the state-owned oil company Ecopetrol said on Wednesday. Cenit said that the attack took place in a rural part of the Arauquita Municipality. It did not result in any injuries or deaths, but it prompted the company to activate its emergency protocols in order to contain the spill. Cenit didn't attribute the attack directly to a particular group. However, the Colombian armed forces claim that there are dissidents from the Revolutionary Armed Forces of Colombia, or FARC, in the area. Cenit reports that the Cano Limon - Covenas pipeline is often targeted by terrorists. It can pump up to 210.000 barrels of crude oil a day across 773 kilometers.
-
US eliminates tariff exemptions for low-value products
White House announced on Wednesday that the United States has suspended a "de minimis exemption" which allowed low-value commercial goods to be sent to the United States free of tariffs. The White House announced that, under an executive order signed on Wednesday by President Donald Trump, packages sent to the U.S. valued at less than $800 outside the international postal system will be subject to "all applicable duty" as of August 29. Trump had earlier targeted packages coming from China and Hong Kong. The White House has said that the tax and spending bill recently signed by the President repeals the legal basis of the de minimis exemption globally starting July 1, 2027. The White House stated in a factsheet that Trump is taking action faster to suspend the de minimis exception than OBBBA demands, to deal quickly with national emergencies, and to save American lives and business. The postal service will charge two different tariffs for goods shipped. Either an "ad-valorem duty", equal to the tariff rate in the country of origin, or a six-month specific tariff, which ranges from $80 to $220, depending on the tariff rate. (Reporting and editing by Susan Heavey, Howard Goller and Christian Martinez)
-
Trans Mountain Canada plans to open the season for capacity expansion later this year
Mark Maki, the CEO of Canada's Trans Mountain Oil Pipeline, said that the operator may begin a formal process to gauge commercial interest this year in the first project of several potential ones to increase the capacity of the system. This process, called an "open-season," will determine if there is sufficient interest from shippers to introduce chemical additives which reduce friction in pipelines, allowing increased flow. Maki stated that adding these drag-reducing compounds could increase daily delivery volumes of the 890,000.00 barrels per day pipe by 5% to a 10%. The capital cost would be between C$10,000,000 and C$20,000,000. The Canadian government owns the Trans Mountain pipeline which transports oil from Alberta to the west coast of British Columbia, where it is then shipped overseas to markets such as China. Last year, a C$34 billion expansion completed the pipeline capacity by tripling it. Trans Mountain says that the pipeline could reach its maximum capacity as early as 2027-2028. "Canadian oil shipping companies want capacity." They also want certainty. "They don't want us to be in a situation where we are short barrels," Maki stated in an interview. Canadian oil exports to the U.S. currently are exempt from tariffs. However, ongoing trade tensions between Canada and its southern neighbour have led Canada - which is the fourth largest oil producer in the world - to diversify their exports. A new oil pipeline connecting the United States to foreign markets has been gaining support in public opinion polls, but no private companies have expressed an interest in developing such a project. Trans Mountain also explores adding additional pumping station to increase flow along the line as well as construction of up to 40 kilometers (12-24 miles) of new pipes to increase the diameter of the line at certain locations. Maki stated that the cost of these projects has yet to be determined. He added that an open season would take place for these projects in 2026, with a date in service sometime in 2029. He said that if all of the Trans Mountain improvement projects are approved, Canada's oil export capacity could be increased by between 200,000 to 300,000 bpd. Canada will export an average of 4,2 million barrels per day (bpd) in 2024. This is about 80% its total production. CDN$1= US$0.72
-
Sources say Safran chooses France for major investment over Canada and the US
Two people with knowledge of the matter say that the French aerospace company Safran will choose France to house a new carbon brakes factory worth 400 million euros ($458,48 million). This follows a competition between France, the United States, and Canada. People who asked not to be identified said that the politically sensitive decision could be made as soon as Thursday. The decision is subject to the approval of the board of the aerospace supplier and has been overshadowed in part by the debate about energy prices. Safran, the company that pioneered the use resilient carbon brakes in Formula 1 racing cars and aircraft, declined to comment. Location of the fourth plant in France is under close scrutiny. President Emmanuel Macron, who has made reindustrialisation a priority political goal, is pushing Europe to increase investment there. In 2019, the partially-state-owned French company plans to open a factory in Lyon, France’s third largest city, for energy-intensive brake production. This will join three existing plants already in France, Kentucky, and Malaysia. COVID-19 AND SOARING Energy Prices In 2020, the COVID-19 pandemic stymied the idea. And in 2022 plans to renew the project in order to capitalize on a rise in air travel were delayed for 18-24 more months due to the escalating energy prices in Europe following Russia's invasion in Ukraine. Safran said that it would consider three main criteria, including competitive energy prices and stable and clean supply based on nuclear and hydraulic power. It will also look at a 10-year price visibility. In December last year, Olivier Andries, the CEO of a major French company, also mentioned criteria such as "economic and political stability". He said that France was his company's top choice, but that the abundant hydroelectric power in Quebec and Oregon's regulated prices for energy were also attractive options. Sources said that the race eventually narrowed to France and Canada. Carbon brakes last longer and are lighter than traditional brakes, but they require a large capital investment to build large industrial facilities. These large facilities consume a lot of gas (from which the carbon can be extracted) and electricity for large ovens. Electricity can account for up to 40% of costs. Industry sources claim that Safran and the French state EDF had fought in the past over the availability of supplies at affordable prices. However, tensions have eased since the recent change of management at EDF. Safran's brakes unit competes against RTX, a Collins Aerospace subsidiary, for airline contracts. Both suppliers are able to benefit from the high margins of aftermarket repairs, as brakes undergo regular refurbishment after heavy usage. Safran has a unit that specializes in carbon brakes, which are used for Formula 1 cars. McLaren entered the sport with Safran in 1984.
-
Fed policy decision generates most governor dissents since 1993
Federal Reserve Governors have voted in the most dissenting manner since the beginning of the U.S. Central Bank's policy meeting, which lasted two days. Governor Christopher Waller, and Fed Vice-Chair for Supervision Michelle Bowman, voted against the decision of the central bank to keep its benchmark overnight rate at 4.25% to 4.50%. They preferred to lower it by a quarter percent. According to the St. Louis Fed, this was the first time since December 1993 that two members of Washington's Board of Governors dissented from a policy decision made by the Federal Open Market Committee. Fed governors rarely express formal opposition, and the majority of FOMC dissenting vote stems from disagreements between regional Fed bank presidents. Last September, Bowman dissented from the FOMC consensus because she wanted a smaller cut in rates than her colleagues. In October 2019, two regional Fed presidents were the last to vote against the FOMC consensus. Dissenting votes at the FOMC tend to be rare. Up until Wednesday, there had been no Fed meeting in this year that generated formal opposition. Only two dissents occurred in 2024, and none in the years 2023. Waller and Bowman both indicated their willingness to ease rates ahead of the policy gathering. Waller's desire to lower borrowing costs for short-term loans was justified in a July 17 speech when he stated that "the economy continues to grow, but the pace has slowed considerably, and risks to the FOMC’s employment mandate are increasing." Bowman dismissed concerns that President Donald Trump’s import tariffs will drive up inflation in her remarks on June 23. She said that as long as inflation was contained, it would be "time to consider" lowering interest rates at the July 29, 30 meeting. Trump has criticized Fed chair Jerome Powell, for not heeding the White House's demand that interest rates are cut immediately. Waller and Bowman are both members of the Fed board appointed by the current President. Contrary to Waller's and Bowman's approach, the majority of Fed policymakers are waiting and watching to see what happens with economic and monetary policies. Although inflation pressures are lessened, many officials worry that Trump's tariffs could increase price pressures in the future, which would argue against easing policy. Waller has made a number of public comments arguing that any increase in inflation caused by tariffs is a temporary problem that central bankers can ignore. He is increasingly concerned that the job market will stagnate and wants the Fed's help to prevent that. The Fed's policy setting committee is notable for its dissenting votes, which show the depth of debate between central bankers. Fed officials say that they are an indication that policymakers do not get stuck in groupthink as some critics claim. The number of dissenting votes tends to rise during times when the economy is uncertain and facing challenges. (Reporting and editing by Paul Simao, Andrea Ricci, and Michael S. Derby)
KLM crews strike in Amsterdam during the summer holidays
The CNV union announced on Wednesday that KLM ground crews would go on strike on July 9 at Amsterdam Airport unless Air France KLM, the Dutch subsidiary of Air France KLM, meets their demands for increased wages.
The eight-hour planned strike will come at a busy time for the airport as the school holidays begin next week in some parts of the Netherlands.
KLM has said that it will consider asking the court to prohibit the strike as it did successfully last month.
CNV is confident that the strike will not be banned as the circumstances have changed.
The court's ruling in June cited concerns about security at the airport in relation to the NATO summit that was to be held in The Hague just days before the strike announcement.
KLM said last week that it had offered higher wages but CNV said the offer was still vague.
(source: Reuters)